Engineering economics: Basic principles – Time value of money, Quantifying alternatives for decision making, Cash flow diagrams, Equivalence - Single payment in the future (P/F, F/P), Present payment compared to uniform series payments (P/ A, A/P), Future payment compared to uniform series payments (F/A, A/F), Arithmetic gradient, Geometric gradient.
Comparison of alternatives: Present, future and annual worth method of comparing alternatives, Rate of return, Incremental rate of return, Break-even comparisons, Capitalized cost analysis, Benefit-cost analysis. Depreciation, Inflation and Taxes. Equipment economics: Equipment costs, Ownership and operating costs, Buy/ Rent/Lease options, Replacement analysis.
Cost estimating: Types of Estimates, Approximate estimates – Unit estimate, Factor estimate, Cost indexes, Parametric estimate, Life cycle cost. Financial management: Construction accounting, Chart of Accounts, Financial statements – Profit and loss, Balance sheets, Financial ratios, Working capital management.